Sunday, January 8, 2012
How to handle Trade-ins Properly?
I am a salesman at a boat dealer dealerhip in Texas. Typically when we do a trade we show the buyer "trade value" based on NADA then ACV it for 10-15% less. This of course takes money out of the current deal but allows you to make a little more on the trade. Well our new program wants us to ACV for 25-30% below Trade value. Which kills the current deal, at the same time we now have to hold X margin to make any money. Any advice from any Salesman experienced in selling large luxory items? and not find another place to work please lol. How can we hold a margin of X and work a deal with a trade and ACV for that much less and still show the customer Trade value?|||In today's lousy economy luxury boats are much more difficult to sell in the first place. Using an ACV 25-30% below the NADA trade value for a trade-in is excessive and beyond industry standards. Ask the boss to go back to the old policy and settle for an ACV -15%. Some dealers offer a trade-in value of ACV -20% and expect some haggling. Hopefully the boss will see the wisdom of that suggestion himself before your entire business goes down the drain.
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